Enterprise Zone

An Enterprise Zone is a specific area designated by the State of Illinois, in cooperation with local government, to receive tax incentives and other benefits to stimulate economic activity, employment opportunities, and neighborhood revitalization. The Lincoln / Logan Enterprise Zone is a certified zone which began January 1, 2017 and will remain in effect for an initial fifteen years expiring upon December 31, 2031.

Office Information

The Enterprise Zone Office is located four blocks south of the Courthouse in downtown Lincoln.

Prior to the construction of a project in the Enterprise Zone, the owner must file a Project Application with the Zoning Administrator.

Minimum Investment

The improvements or renovations are of the scope and nature for which a building permit has been obtained and has an estimated cost of at least $5,000.00.

Enterprise Zone Map

The County offers a couple of options for determining if a property is within the Enterprise Zone.

Use the Enterprise Zone Web App and use the “Search By Address” tool located on the upper left corner of the site and type in the address of the property. The map should locate and zoom to the property. The map should show an aerial view of the property, and the location of the Enterprise Zone boundary.

Countywide boundaries of the Enterprise Zone can be found on the Logan County GIS Internet Mapping application. To view the boundaries of the Enterprise Zone expand the Districts folder located under the Tax Districts layer and turn on the Enterprise Zone layer by clicking the box next to Enterprise Zone Boundary. To view a specific area more closely, use the “Zoom In” (magnifying glass with a + in the middle) to drag a box and zoom into a specific area. An alternative way to locate a specific parcel is to use the “Search by Parcel Number” tool, “right click” on the parcel found and then click “Zoom To” to zoom to the parcel.

Local Incentives

BUILDING PERMIT FEE REDUCTION

Eligible projects will receive a fifty percent (50%) reduction in building permit fees. The improvements or renovations must be of the scope and nature for which a building permit has been obtained and has an estimated cost of at least $5,000.00. Application fees for zone changes, variances, conditional uses, or special uses are not waived.

PROPERTY TAX ABATEMENT

Abatements are offered for a total of ten (10) years based on the following schedule:

Years 1-5: 100% of the increase in value

Years 6-10: 50% of the increase in value

The abatement applies only to taxes on the increase in assessed value attributable to the new construction, revitalization, or renovation. Taxes based on the assessed value of land and existing improvements continue to be extended and collected. Abatement of taxes on any parcel shall not exceed the amount attributable to the eligible improvements on the property.

The following taxing authorities offer tax abatements:

Logan County

City of Lincoln

City of Atlanta

City of Mt. Pulaski

Village of Elkhart

Village of Emden

Village of Hartsburg

Village of New Holland

An application for Property Tax Abatement must be submitted to the Zone Administrator for projects wanting to receive an abatement. Prior to the construction of a project in the Enterprise Zone, the owner must file a Project Application with the Zoning Administrator.

State Incentives

BUILDING MATERIALS SALES TAX EXEMPTION

An Application for Sales Tax Exemption must be submitted to the Zone Administrator along with a copy of the building permit for the project. The Zone Administrator will submit the application to IDOR for review and issuance. Sales Tax Exemption Application (PDF)

Prior to the construction of a project in the Enterprise Zone, the owner must file a Project Application with the Zoning Administrator.

Each retailer who makes a sale of building materials to be incorporated into real estate located in the Enterprise Zone may deduct receipts from such sales when calculating the tax imposed by the State of Illinois. The deduction shall be limited to and shall only apply to any remodeling, rehabilitation, or new construction which the Illinois Department of Revenue has issued a Building Materials Exemption Certificate. A copy of the Certificate must be provided to the retailer at the time of sale. Additional information regarding the Certificate can be found in the IDOR Informational Bulletin FY 2013-16 or at the IDOR website.

Building materials that are eligible for the enterprise zone sales tax deduction include items that are permanently affixed to real property such as lumber, mortar, glued-down carpets, paint, wallpaper and similar affixed items. The deduction does not apply to materials purchased for routine maintenance, repair, or upkeep of the property.

For information on additional incentives please click on the "Link to Web Resource" included with each incentive which will take you to the Illinois Enterprise Zone Association website. The State offers the following tax incentives for investment in an Illinois Enterprise Zone:

INVESTMENT TAX CREDIT - allows a .5 percent credit against the state income tax for investments in qualified property which is placed in service in an enterprise zone. Link to Web Resource

SALES TAX DEDUCTION - allows that each retailer who makes a qualified sale of building materials to be incorporated into real estate in an enterprise zone may deduct receipts from such sales when calculating the tax imposed. Link to Web Resource

EZ MANUFACTURING, MACHINERY AND EQUIPMENT SALES TAX EXEMPTION - allows a business enterprise that is certified by DCCA, as making a $5 million investment that either: creates a minimum of 200 full-time equivalent jobs in Illinois; or retains a minimum of 2,000 full-time jobs in Illinois; or which retains 90% of the existing jobs, a 6.25 percent exemption on all tangible personal property which is used or consumed in the process of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease. Link to Web Resource

UTILITY TAX EXEMPTION - allows a business enterprise that is certified by DCCA, as making an investment in the zone that either: creates a minimum of 200 full-time equivalent jobs in Illinois, or retains a minimum of 1,000 full-time jobs in Illinois, a 5 percent state sales tax exemption on gas, electricity and the Illinois Commerce Commission .1 percent administrative charge and excise taxes on the act or privilege of originating or receiving telecommunications. Link to Web Resource

Reporting Requirements

Any business receiving tax incentives due to its location within an Enterprise Zone or its designation as a High impact Business must report the total Enterprise Zone or High Impact Business tax benefits received by the business, broken down by incentive category and enterprise zone, if applicable, annually to the Department of Revenue. Reports will be due no later than March 30 of each year and shall cover the previous calendar year. Failure to report data shall result in ineligibility to receive incentives. For the first offense, a business shall be given 60 days to comply.

Employers shall report their job creation, retention, and capital investment numbers within the zone annually to the Zone Administrator, which will compile the information and report it to the Department of Revenue no later than March 30 of each calendar year.